Answer:
The maximum that Marco is willing to pay to buy ABC Co. today is $23967.0645
Explanation:
The maximum amount that Marco will be willing to pay today will be the present value of the expected cash flows discounted at the required rate of return. Using the discounted cash flows approach also known as DCF approach, we can calculate the present value of the cash flows,
Present Value = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n
Where,
- CF is the cash flow
- r is the required rate of return
Present value = 5000 / (1+0.12) + 10000 / (1+0.12)^2 + 16200 / (1+0.12)^3
Present value = $23967.0645
The maximum that Marco is willing to pay to buy ABC Co. today is $23967.0645
Answer:
its a subject ....is a study of economic ,business concepts....
The social needs the internet and technology because they need it for the social entrepreneurs
Answer: $412,600
Explanation:
AFN = Increase in assets - Increase in Liabilities - Addition to Retained Earnings
Increase in Assets
= 5,000,000 * 15%
= $750,000
Increase in Liabilities
Only use Accruals and Accounts Payable
= (450,000 + 450,000) * 15%
= $135,000
Additional to Retained Earnings
= After tax Profit
= 9,200,000 * 4%
= $368,000
Addition to retained earnings = 368,000 * ( 1 - payout ratio)
= 368,000 * ( 1 - 45%)
= $202,400
Additional Funds Needed (AFN) = 750,000 - 135,000 - 202,400
= $412,600
Answer:
a) See the image attached for the sheet of closing entry
b) New balance = (174000-111000-12000) = 51000
